Buy 5Y BTPei Breakevens vs Bundei as Cash Flows Approach: Citi
(Bloomberg) -- Recent underperformance of BTPei21/22 real yield vs Bundei23 has taken the breakeven spread to historically attractive levels, Citigroup strategists including Aman Bansal write in client note.
- Buy BTPei21 breakeven vs Bundei23 at -12bp, target +2bp, stop -19bp
- Scope for reversal as BTPei cash flows approach; EU1.7b of BTPei coupons and EU9.8b of the BTPei16 redemption
- Germany is the only EMU issuer that has not issued a new 5Y linker this year
- Any new 5yr Boblei launch prompted by this cross-market richness might weigh on the Bundei
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Aman Bansal (Citigroup Inc)
To de-activate this alert, click
hereUUID: 7947283